Nominal value of the portfolio reduced by EUR 7.5 billion in fiscal year 2021

Profit from ordinary activities of EUR 44 million

Successful sale marks the completion of the wind-up task for the DEPFA Group


FMS Wertmanagement (FMS-WM), the German federal government’s winding-up institution, today announced that it ended fiscal year 2021 with a positive result from ordinary activities of EUR 44 million, an increase on the prior-year figure (EUR 25 million).

Portfolio wind-up in fiscal year 2021 came to EUR 9.8 billion. Taking into account countervailing currency effects of EUR 2.3 billion, the nominal value of the portfolio declined by a total of EUR 7.5 billion in fiscal year 2021 to EUR 54.1 billion.

“We once again reduced the complexity of the portfolio in fiscal year 2021 and thus implemented further measures aimed at achieving the medium-term objectives,” says Spokesman of the Executive Board Christoph Müller. The portfolio has been reduced by around 69 percent since 1 October 2010.

The balance of risk provisions and net income from investments in the amount of EUR -175 million (previous year: EUR -255 million) was impacted by valuation and sale decisions and, as in the previous year, had a considerably negative effect on the result in fiscal 2021. Within net income from investments, disposal losses in connection with measures to unwind the portfolio are set against the gain on the sale of the shares in DEPFA BANK plc (DEPFA).

FMS-WM reduced general and administrative expenses by a further 8 percent compared with the previous year (EUR 134 million) to EUR 124 million. Net interest and commission income therefore continued to by far exceed general and administrative expenses in fiscal year 2021.

Total funding obtained via the Financial Market Stabilisation Fund (FMS) increased to EUR 55 billion at the end of 2021. The euro-denominated borrowings via the FMS were used partly for cost-effective funding in pounds sterling by entering into long-term foreign exchange derivatives. “FMS-WM itself continues to ensure long-term funding in foreign currencies and short-term money market funding. In fiscal year 2021, most short-term fund raising was ensured via the two established money market programmes,” explains Carola Falkner, Executive Board member in charge of Treasury and Asset Management.

In fiscal year 2021, FMS-WM successfully completed and therefore fully met the task of winding up the DEPFA Group. Various value levers had been identified and used since FMS-WM’s acquisition of the DEPFA Group in 2014. Following the process initiated in summer 2020, which had been very competitive despite the pandemic conditions, FMS-WM signed the agreement for the sale of the shares in DEPFA on 15 February 2021. The sale closed successfully on 19 November 2021 and all of FMS-WM’s funding lines for the DEPFA Group were terminated in this context.

“Taking into account the gain on the sale of DEPFA as well as other realised and budgeted income, the economic benefit to FMS-WM of acquiring and winding up the DEPFA Group comes to over EUR 1 billion,” says Spokesman of the Executive Board Christoph Müller. “It has been confirmed that the wind-up of the DEPFA Group by FMS-WM has been a very favourable option compared to the sale to a third party that was not carried out in 2014,” Müller states, expressing his satisfaction.

Despite the fact that the progressive unwinding of the portfolio will entail a further reduction in current income, FMS-WM expects at least a breakeven result from ordinary activities for fiscal year 2022. At the time of preparing the annual financial statements for the period ended 31 December 2021, there had not been any concrete indications that contradict this forecast, even taking into account the war situation in Ukraine since the end of February 2022. Nevertheless, the war situation in Ukraine and any associated consequences may have a negative impact overall on the unwinding of the portfolio anticipated in fiscal year 2022, the further development of the operating model and the course of business in 2022.

FMS-WM was founded in 2010 with the aim of winding up the risk positions and operations that were transferred to the company from the Hypo Real Estate Group (HRE Group) effective 1 October 2010. FMS-WM is supervised by the Federal Agency for Financial Market Stabilisation. The Financial Market Stabilisation Fund is obligated without limitation to provide additional funds under Section 8a of the German Law Establishing a Financial Market and Economy Stabilisation Fund (Gesetz zur Errichtung eines Finanzmarkt- und Witschaftsstabilisierungsfonds - Stabilisierungsfondsgesetz) for losses incurred in winding up the portfolio.

If you have any questions, please do not hesitate to contact Frank Hessel, Press Spokesman, at +49 (0)89-9547627 647 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..